2% additional interest rate for SDAs

Additional interest up to 2 percent per annum will be extended for two years for Special Deposit Accounts (SDAs), the Central Bank said yesterday.

“Considering the potential of Special Deposit Accounts (SDAs) to attract a substantial amount of foreign exchange into the country and the resultant positive impact on the foreign currency reserve position of the country and the overall economy, the Finance Minister, with the recommendation of the Monetary Board of the Central Bank of Sri Lanka (CBSL), has decided to grant permission to rollover SDAs up to an accumulated period of 24 months from the initial date of placing such deposits. SDAs so rolled over will be eligible for additional interest up to 2 percent per annum offered by the government,” a Central Bank statement said.

The government introduced the SDAs on April 8, last year, to seek assistance for the national effort to overcome the effects of the COVID-19 pandemic in the country.

As at July 2, 2021, total deposits received into SDAs amounted to approximately US $ 458 million.
The regulations made by the Finance Minister in this regard have been published in Government Gazette (Extraordinary) Notifications No. 2234/19, dated June 30, 2021.

Further, the Central Bank said it has issued the necessary Directions to the authorised dealers (licensed commercial banks and National Savings Bank) to implement the government’s decision.